Ratios Flashcards

1
Q

Accounts Receivable Turnover

A

accs receivables/credit sales

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2
Q

Average Collection Period

A

accs receivable turnover * 365

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3
Q

Average Payment Period

A

(Accounts Payable/Annual Credit Purchases)*365

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4
Q

Return on Capital Employed

A

(Net Profit/Capital Employed)*100

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